Analysis of Reportable Segments
Caterpillar Inc. operates in 4 segments: Construction Industries; Resource Industries; Power & Energy; and Financial Products Segment.
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- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Profitability Ratios
- Analysis of Solvency Ratios
- Analysis of Long-term (Investment) Activity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Current Ratio since 2005
- Price to Earnings (P/E) since 2005
- Price to Operating Profit (P/OP) since 2005
- Price to Sales (P/S) since 2005
- Analysis of Debt
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Segment Profit Margin
Caterpillar Inc., profit margin by reportable segment
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Construction Industries | |||||
| Resource Industries | |||||
| Power & Energy | |||||
| Financial Products Segment |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
Segment profit margins exhibited varied performance across the reporting periods. Overall, margins generally increased from 2021 to 2023, followed by a stabilization or decline in subsequent years. The Financial Products Segment consistently maintained the highest margins, while Construction Industries and Resource Industries showed more cyclical patterns.
- Construction Industries
- The Construction Industries segment experienced a notable increase in profit margin from 16.76% in 2021 to a peak of 25.44% in 2023. This was followed by a decrease to 24.22% in 2024 and a more substantial decline to 18.66% in 2025. This suggests potential sensitivity to economic cycles or changes in project demand within the construction sector.
- Resource Industries
- Profit margins in the Resource Industries segment followed a similar upward trajectory from 12.96% in 2021 to 20.86% in 2023. Margins remained relatively high in 2024 at 20.45%, before decreasing to 15.94% in 2025. This pattern mirrors that of the Construction Industries segment, potentially indicating a correlation with broader economic conditions affecting capital expenditure in resource extraction.
- Power & Energy
- The Power & Energy segment demonstrated a consistent, albeit more moderate, increase in profit margin from 13.64% in 2021 to 19.93% in 2025. This represents the most stable growth among the reported segments, suggesting resilience or a different demand dynamic compared to the construction and resource sectors. The increase from 17.63% in 2023 to 19.88% in 2024 and then to 19.93% in 2025 indicates sustained improvement.
- Financial Products Segment
- The Financial Products Segment consistently reported the highest profit margins throughout the period. While margins decreased from 29.55% in 2021 to 22.89% in 2025, the decline was gradual. This segment’s consistently strong performance may be attributable to its business model or specific market positioning. The rate of decline slowed between 2024 and 2025, suggesting a potential stabilization.
The observed trends suggest that the Construction Industries and Resource Industries segments are more susceptible to cyclical fluctuations than the Power & Energy and Financial Products segments. Further investigation into the underlying drivers of these margin changes within each segment would be beneficial.
Segment Profit Margin: Construction Industries
Caterpillar Inc.; Construction Industries; segment profit margin calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Profit | |||||
| Sales and revenues | |||||
| Segment Profitability Ratio | |||||
| Segment profit margin1 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Segment profit margin = 100 × Profit ÷ Sales and revenues
= 100 × ÷ =
The Construction Industries segment demonstrated a generally positive trajectory in profitability between 2021 and 2023, followed by a moderation in subsequent years. Sales and revenues exhibited growth initially, peaking in 2023, before experiencing a slight decline in the most recent two years presented.
- Profit
- Segment profit increased substantially from US$3,706 million in 2021 to US$6,975 million in 2023, representing a significant expansion in earnings. However, profit decreased to US$6,165 million in 2024 and further to US$4,675 million in 2025. This indicates a potential softening of performance in the latter period.
- Sales and Revenues
- Sales and revenues grew from US$22,106 million in 2021 to US$27,418 million in 2023. A decrease was then observed in 2024, with sales and revenues reaching US$25,455 million, and a further decline to US$25,060 million in 2025. While still above the 2021 level, the recent trend suggests a plateauing or contraction in revenue generation.
- Segment Profit Margin
- The segment profit margin increased from 16.76% in 2021 to a peak of 25.44% in 2023, reflecting improved operational efficiency and/or pricing power. The margin then decreased to 24.22% in 2024 and 18.66% in 2025. This decline in margin, despite a relatively stable revenue base in 2024 and 2025, suggests increasing costs or pricing pressures are impacting profitability. The 2025 margin represents a return towards levels observed in the earlier period of 2021.
Overall, the Construction Industries segment experienced strong growth in both profit and margin through 2023. However, the period from 2023 to 2025 shows a reversal of this trend, with both profit and margin declining, despite relatively stable sales and revenues. Further investigation into the drivers of these changes would be warranted.
Segment Profit Margin: Resource Industries
Caterpillar Inc.; Resource Industries; segment profit margin calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Profit | |||||
| Sales and revenues | |||||
| Segment Profitability Ratio | |||||
| Segment profit margin1 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Segment profit margin = 100 × Profit ÷ Sales and revenues
= 100 × ÷ =
The Resource Industries segment demonstrated a generally positive trajectory in profitability and sales between 2021 and 2023, followed by a moderation in performance in the subsequent two years. Profit increased significantly over the period, though recent results indicate a potential shift in this trend. Sales and revenues also exhibited growth initially, stabilizing in the later years.
- Profit
- Profit within the Resource Industries segment increased from US$1,291 million in 2021 to US$2,834 million in 2023, representing substantial growth. However, profit decreased to US$2,533 million in 2024 and further to US$1,988 million in 2025. This suggests a potential weakening of profitability in the most recent period.
- Sales and Revenues
- Sales and revenues experienced growth from US$9,963 million in 2021 to US$13,583 million in 2023. Following this growth, sales and revenues decreased slightly to US$12,389 million in 2024 and remained relatively stable at US$12,474 million in 2025. The stabilization indicates a potential plateau in revenue expansion.
- Segment Profit Margin
- The segment profit margin increased consistently from 12.96% in 2021 to a peak of 20.86% in 2023, indicating improved operational efficiency and pricing power. The margin decreased to 20.45% in 2024 and then to 15.94% in 2025. This decline in the profit margin, despite relatively stable sales, suggests increasing costs or pricing pressures impacting profitability.
Overall, the Resource Industries segment experienced strong performance through 2023, but the results from 2024 and 2025 indicate a potential reversal of this trend. The decreasing profit margin warrants further investigation to determine the underlying causes and potential mitigation strategies.
Segment Profit Margin: Power & Energy
Caterpillar Inc.; Power & Energy; segment profit margin calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Profit | |||||
| Sales and revenues | |||||
| Segment Profitability Ratio | |||||
| Segment profit margin1 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Segment profit margin = 100 × Profit ÷ Sales and revenues
= 100 × ÷ =
The Power & Energy segment demonstrated a consistent upward trajectory in both profit and sales and revenues between 2021 and 2025. Profit increased from US$2,768 million to US$6,418 million over the five-year period, while sales and revenues rose from US$20,287 million to US$32,201 million. This indicates strong growth within the segment.
- Profit Trend
- Profit exhibited a steady increase annually. The growth rate accelerated between 2022 and 2023, with a substantial increase of US$1,627 million. While growth continued in subsequent years, the rate of increase moderated, with gains of US$799 million between 2023 and 2024, and US$682 million between 2024 and 2025.
- Sales and Revenues Trend
- Sales and revenues also increased each year. The largest year-over-year increase occurred between 2021 and 2022, adding US$3,465 million in sales. Growth remained robust through 2023, adding US$4,249 million. The rate of revenue growth slowed in 2024 and 2025, with increases of US$853 million and US$3,347 million respectively.
- Segment Profit Margin
- The segment profit margin showed a consistent improvement over the period. Starting at 13.64% in 2021, it increased to 19.93% in 2025. The most significant increase in margin occurred between 2022 and 2023, rising 3.70 percentage points. The margin increase slowed in the later years, with gains of 2.25 percentage points between 2023 and 2024, and 0.05 percentage points between 2024 and 2025, suggesting increasing difficulty in maintaining the same rate of margin expansion as sales grow.
The sustained growth in both profit and sales, coupled with the expanding profit margin, suggests improving operational efficiency and/or favorable pricing dynamics within the Power & Energy segment. The deceleration in margin expansion in the most recent period warrants further investigation to determine potential contributing factors.
Segment Profit Margin: Financial Products Segment
Caterpillar Inc.; Financial Products Segment; segment profit margin calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Profit | |||||
| Sales and revenues | |||||
| Segment Profitability Ratio | |||||
| Segment profit margin1 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Segment profit margin = 100 × Profit ÷ Sales and revenues
= 100 × ÷ =
The Financial Products segment demonstrated consistent growth in both profit and sales and revenues between 2021 and 2025. However, the segment profit margin experienced a noticeable decline over the same period.
- Profit
- Profit within the Financial Products segment increased from US$908 million in 2021 to US$966 million in 2025. While there was a slight decrease from 2021 to 2022 (US$864 million), profit generally trended upward, with consistent year-over-year gains from 2022 through 2025.
- Sales and Revenues
- Sales and revenues exhibited a steady increase throughout the five-year period, rising from US$3,073 million in 2021 to US$4,220 million in 2025. The largest single-year increase occurred between 2022 and 2023, with an increase of US$532 million. Growth continued, albeit at a slower pace, between 2023 and 2025.
- Segment Profit Margin
- The segment profit margin decreased consistently from 29.55% in 2021 to 22.89% in 2025. The decline was most pronounced between 2021 and 2022, falling 2.99 percentage points. Subsequent declines were more moderate, decreasing approximately 1-2 percentage points annually. Despite the growth in profit, the margin compression suggests increasing costs or pricing pressures within the segment.
The observed trend indicates that while the Financial Products segment is expanding its revenue base and overall profitability, it is doing so at a decreasing rate of efficiency. Further investigation into the cost structure and pricing strategies of this segment would be warranted to understand the drivers behind the margin decline.
Segment Return on Assets (Segment ROA)
Caterpillar Inc., ROA by reportable segment
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Construction Industries | |||||
| Resource Industries | |||||
| Power & Energy | |||||
| Financial Products Segment |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
Segment return on assets exhibited varied performance across the reporting periods. Significant fluctuations were observed within each segment, indicating differing responses to market conditions and internal strategies.
- Construction Industries
- The Construction Industries segment demonstrated a substantial increase in return on assets from 81.50% in 2021 to a peak of 129.55% in 2023. This was followed by a decline to 111.16% in 2024 and a further decrease to 85.91% in 2025. This pattern suggests a period of strong growth followed by a moderation, potentially influenced by cyclical demand or increased competition.
- Resource Industries
- The Resource Industries segment experienced a consistent upward trend in return on assets from 21.65% in 2021 to 49.36% in 2023. While growth slowed in 2024, reaching 45.66%, a further decline to 32.66% was noted in 2025. This indicates a positive trajectory initially, but with diminishing returns and a subsequent decrease in profitability as measured by return on assets.
- Power & Energy
- The Power & Energy segment showed a steady improvement in return on assets throughout the observed period. Starting at 29.91% in 2021, it increased to 46.76% in 2023, 48.73% in 2024, and reached 56.36% in 2025. This consistent growth suggests effective strategies and favorable market conditions within this segment.
- Financial Products Segment
- The Financial Products Segment maintained a relatively stable, but low, return on assets throughout the period. Values fluctuated minimally between 2.60% in 2021 and 2.33% in 2025. This suggests consistent, albeit limited, profitability within this segment, potentially due to its different business model or risk profile.
Overall, the segment returns on assets reveal a diverse performance landscape. While the Construction and Resource Industries segments experienced significant volatility, the Power & Energy segment demonstrated consistent growth, and the Financial Products Segment remained relatively stable. These trends warrant further investigation to understand the underlying drivers and potential implications for overall company performance.
Segment ROA: Construction Industries
Caterpillar Inc.; Construction Industries; segment ROA calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Profit | |||||
| Assets | |||||
| Segment Profitability Ratio | |||||
| Segment ROA1 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Segment ROA = 100 × Profit ÷ Assets
= 100 × ÷ =
The Construction Industries segment demonstrated a fluctuating performance profile over the five-year period. Profitability exhibited an initial increase followed by a decline, while asset levels showed a more moderate growth pattern. The segment’s Return on Assets (ROA) mirrored the profit trend, peaking in 2023 before receding.
- Profit
- Profit within the Construction Industries segment increased from US$3,706 million in 2021 to US$4,743 million in 2022, representing a substantial gain. This positive momentum continued into 2023, with profit reaching US$6,975 million, the highest value observed during the period. However, profit decreased to US$6,165 million in 2024 and further declined to US$4,675 million in 2025, nearing the 2021 level.
- Assets
- Assets employed by the Construction Industries segment increased steadily from US$4,547 million in 2021 to US$5,168 million in 2022. Growth continued, albeit at a slower pace, reaching US$5,384 million in 2023. Further incremental increases were observed in 2024 (US$5,546 million) and 2025 (US$5,442 million), indicating a relatively stable asset base despite profit fluctuations.
- Segment ROA
- Segment ROA increased from 81.50% in 2021 to 91.78% in 2022, aligning with the profit growth. The most significant increase occurred between 2022 and 2023, with ROA reaching 129.55%. This peak was followed by a decrease to 111.16% in 2024 and a more pronounced decline to 85.91% in 2025. The 2025 ROA, while still substantial, represents a return towards the earlier levels observed in the period, correlating with the profit reduction.
The segment’s performance suggests a strong correlation between profit and ROA. While asset growth was consistent, the substantial fluctuations in profit significantly impacted the segment’s efficiency in generating returns from its assets. The decline in both profit and ROA in the latter years of the period warrants further investigation to determine the underlying causes and potential mitigation strategies.
Segment ROA: Resource Industries
Caterpillar Inc.; Resource Industries; segment ROA calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Profit | |||||
| Assets | |||||
| Segment Profitability Ratio | |||||
| Segment ROA1 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Segment ROA = 100 × Profit ÷ Assets
= 100 × ÷ =
The Resource Industries segment demonstrated a fluctuating performance profile between 2021 and 2025. Profitability, as measured by segment profit, exhibited an initial increase followed by a decline, while asset levels remained relatively stable with a slight increase in the final year. The segment’s Return on Assets (ROA) mirrored the profit trend, peaking in 2023 before decreasing in subsequent years.
- Profit Trend
- Segment profit increased significantly from US$1,291 million in 2021 to US$1,827 million in 2022, representing a 41.05% increase. This growth continued into 2023, with profit reaching US$2,834 million, a 55.58% increase from the prior year. However, profit decreased in 2024 to US$2,533 million, a 10.98% decline, and further decreased to US$1,988 million in 2025, a 21.59% decrease from 2024.
- Asset Trend
- Assets within the Resource Industries segment showed relative stability throughout the period. A slight decrease was observed from US$5,962 million in 2021 to US$5,775 million in 2022 (a 3.27% decrease). This trend continued with a marginal decrease to US$5,742 million in 2023 (a 0.57% decrease). A further decrease to US$5,548 million was noted in 2024 (a 3.38% decrease), before increasing to US$6,087 million in 2025, a 9.73% increase.
- Segment ROA Trend
- Segment ROA increased substantially from 21.65% in 2021 to 31.64% in 2022, a 46.18% increase. The most significant increase occurred between 2022 and 2023, with ROA reaching 49.36%, a 56.03% increase. A decrease to 45.66% was observed in 2024 (a 7.93% decrease), followed by a further decrease to 32.66% in 2025 (a 28.83% decrease). The ROA trend closely follows the profit trend, indicating a strong correlation between profitability and asset utilization within this segment.
The segment experienced peak profitability and asset efficiency in 2023, followed by a period of declining performance in both areas. The increase in assets in 2025 did not translate into improved profitability, suggesting potential inefficiencies or external factors impacting returns.
Segment ROA: Power & Energy
Caterpillar Inc.; Power & Energy; segment ROA calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Profit | |||||
| Assets | |||||
| Segment Profitability Ratio | |||||
| Segment ROA1 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Segment ROA = 100 × Profit ÷ Assets
= 100 × ÷ =
The Power & Energy segment demonstrated a consistent pattern of growth in both profitability and asset base between 2021 and 2025. Profit increased steadily over the five-year period, while assets also exhibited an overall upward trajectory, though with a slight decrease in the most recent year. This positive performance is reflected in a substantial and sustained improvement in the segment’s Return on Assets (ROA).
- Profit
- Profit within the Power & Energy segment increased from US$2,768 million in 2021 to US$6,418 million in 2025. This represents a cumulative increase of approximately 132% over the period. The growth was consistent year-over-year, with increases ranging from approximately 19% to 25% annually.
- Assets
- Assets employed by the Power & Energy segment grew from US$9,253 million in 2021 to US$11,772 million in 2024, representing a growth of approximately 27%. However, assets decreased slightly to US$11,387 million in 2025, indicating a potential shift in asset allocation or utilization. Despite this final year decrease, the overall trend remains positive.
- Segment ROA
- Segment ROA experienced a significant and consistent upward trend, increasing from 29.91% in 2021 to 56.36% in 2025. This indicates a substantial improvement in the segment’s efficiency in generating profit from its asset base. The ROA increased by approximately 87% over the five-year period. The rate of increase slowed slightly between 2023 and 2024, but accelerated again in 2025, suggesting continued strong performance and efficient asset management.
The combination of increasing profit and generally increasing assets, coupled with the substantial rise in ROA, suggests that the Power & Energy segment is becoming increasingly effective at deploying its resources to generate returns. The slight decrease in assets in 2025 warrants further investigation to determine if it represents a strategic shift or a temporary fluctuation.
Segment ROA: Financial Products Segment
Caterpillar Inc.; Financial Products Segment; segment ROA calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Profit | |||||
| Assets | |||||
| Segment Profitability Ratio | |||||
| Segment ROA1 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Segment ROA = 100 × Profit ÷ Assets
= 100 × ÷ =
The Financial Products segment demonstrated relatively stable profitability between 2021 and 2025. Profit exhibited a modest increase over the period, while assets experienced more substantial growth, resulting in a generally consistent, but slightly declining, return on assets.
- Profit
- Profit for the segment fluctuated around the US$900 million mark. It decreased slightly from US$908 million in 2021 to US$864 million in 2022, before recovering to US$909 million in 2023 and continuing to increase to US$966 million in 2025. This indicates a positive, albeit gradual, profit growth trajectory.
- Assets
- Assets within the Financial Products segment showed a consistent upward trend. Starting at US$34,860 million in 2021, assets grew to US$34,269 million in 2022, then increased to US$35,685 million in 2023, US$36,925 million in 2024, and reached US$41,476 million in 2025. This represents a significant expansion of the segment’s asset base over the five-year period.
- Segment ROA
- Segment Return on Assets (ROA) remained relatively stable, beginning at 2.60% in 2021. It decreased to 2.52% in 2022, then slightly recovered to 2.55% in 2023, before decreasing again to 2.52% in 2024. A further decrease was observed in 2025, with ROA falling to 2.33%. The decline in ROA, despite increasing profits, suggests that asset growth outpaced profit growth, leading to a lower return relative to the segment’s asset base.
Overall, the segment experienced growth in both profit and assets. However, the increasing asset base resulted in a slight erosion of the segment’s Return on Assets, indicating diminishing efficiency in asset utilization over the analyzed period.
Segment Asset Turnover
Caterpillar Inc., asset turnover by reportable segment
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Construction Industries | |||||
| Resource Industries | |||||
| Power & Energy | |||||
| Financial Products Segment |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
Segment asset turnover ratios exhibit varied performance across the reporting periods. Overall, the Construction Industries and Power & Energy segments demonstrate relatively stable and, in some instances, improving efficiency in asset utilization, while Resource Industries shows fluctuating performance. The Financial Products Segment consistently maintains a very low asset turnover.
- Construction Industries
- The Construction Industries segment displays a generally stable asset turnover, beginning at 4.86 and peaking at 5.09 before declining slightly to 4.60. This indicates a consistent ability to generate sales from its asset base, with a minor decrease in efficiency towards the end of the observed period. The fluctuations are relatively small, suggesting a predictable operational pattern.
- Resource Industries
- The Resource Industries segment shows the most significant fluctuation in asset turnover. Starting at 1.67, the ratio increased to 2.37, indicating improved asset utilization. However, it then decreased to 2.05, suggesting a potential weakening in the efficiency of asset deployment. This segment’s performance is more volatile than the others, potentially reflecting cyclical demand or changes in capital investment strategies.
- Power & Energy
- The Power & Energy segment demonstrates a positive trend in asset turnover, increasing from 2.19 to 2.83 over the period. This suggests a growing efficiency in converting assets into sales. While there is a slight dip to 2.45 in one period, the overall trajectory indicates improved performance. This segment appears to be effectively managing its assets to generate revenue.
- Financial Products Segment
- The Financial Products Segment consistently reports a very low asset turnover ratio, ranging between 0.09 and 0.11. This is characteristic of financial service businesses where a large asset base supports a relatively smaller volume of revenue. The ratio remains stable throughout the period, indicating consistent operational characteristics within this segment.
In summary, the observed trends suggest varying levels of operational efficiency across the segments. The Construction Industries and Power & Energy segments demonstrate consistent or improving asset utilization, while Resource Industries experiences more volatility. The Financial Products Segment’s low turnover is consistent with its business model.
Segment Asset Turnover: Construction Industries
Caterpillar Inc.; Construction Industries; segment asset turnover calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Sales and revenues | |||||
| Assets | |||||
| Segment Activity Ratio | |||||
| Segment asset turnover1 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Segment asset turnover = Sales and revenues ÷ Assets
= ÷ =
The Construction Industries segment demonstrated generally stable performance in asset utilization between 2021 and 2025, with some fluctuation. Sales and revenues exhibited an initial increase followed by a slight decline, while assets showed a more consistent upward trend before stabilizing. The segment asset turnover ratio reflects these dynamics.
- Sales and Revenues
- Sales and revenues for the Construction Industries segment increased from US$22.106 billion in 2021 to US$25.269 billion in 2022, representing a growth of approximately 14.3%. Further growth was observed in 2023, reaching US$27.418 billion. However, revenues decreased to US$25.455 billion in 2024 and continued to decline slightly to US$25.060 billion in 2025.
- Assets
- The value of assets within the Construction Industries segment increased steadily from US$4.547 billion in 2021 to US$5.168 billion in 2022, and continued to rise to US$5.384 billion in 2023. The rate of increase slowed in 2024, with assets reaching US$5.546 billion, and then decreased marginally to US$5.442 billion in 2025. This suggests a potential stabilization of investment in assets within the segment.
- Segment Asset Turnover
- The segment asset turnover ratio, a measure of how efficiently assets are used to generate sales, was 4.86 in 2021. It increased to 4.89 in 2022 and peaked at 5.09 in 2023. A decrease was then observed in 2024, with the ratio falling to 4.59. The ratio remained relatively stable in 2025 at 4.60. The increase in the ratio through 2023 indicates improved asset utilization, while the subsequent decline suggests a less efficient use of assets in generating sales, potentially due to the decrease in revenues relative to the asset base.
The slight decline in segment asset turnover in the latter years, despite relatively stable asset levels, warrants further investigation to determine the underlying causes and potential areas for improvement in operational efficiency.
Segment Asset Turnover: Resource Industries
Caterpillar Inc.; Resource Industries; segment asset turnover calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Sales and revenues | |||||
| Assets | |||||
| Segment Activity Ratio | |||||
| Segment asset turnover1 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Segment asset turnover = Sales and revenues ÷ Assets
= ÷ =
The Resource Industries segment demonstrated increasing sales and revenues from 2021 to 2023, followed by a slight decline in 2024 and a modest recovery in 2025. Assets within the segment exhibited a decrease from 2021 to 2023, then continued to decline in 2024 before increasing in 2025. The segment asset turnover ratio shows a clear upward trend initially, peaking in 2023, and then decreasing in the subsequent two years.
- Sales and Revenues
- Sales and revenues increased from US$9,963 million in 2021 to US$13,583 million in 2023, representing a substantial growth period. A decrease to US$12,389 million was observed in 2024, followed by a slight increase to US$12,474 million in 2025. This suggests potential market fluctuations or shifts in demand impacting revenue generation.
- Assets
- The value of assets decreased from US$5,962 million in 2021 to US$5,742 million in 2023. A further decrease to US$5,548 million occurred in 2024, before rising to US$6,087 million in 2025. This pattern could indicate strategic asset management, divestitures, or changes in investment priorities within the segment.
- Segment Asset Turnover
- The segment asset turnover ratio increased from 1.67 in 2021 to 2.37 in 2023, indicating improved efficiency in utilizing assets to generate sales. The ratio then decreased to 2.23 in 2024 and further to 2.05 in 2025. While still above the 2021 level, the recent decline suggests a potential decrease in the efficiency of asset utilization, possibly linked to the fluctuations in sales and asset values. The peak in 2023 coincided with the highest sales and lowest asset base within the observed period.
Overall, the Resource Industries segment experienced a period of growth followed by stabilization and a slight recovery. The decreasing asset turnover ratio in the latter years warrants further investigation to determine the underlying causes and potential implications for future performance.
Segment Asset Turnover: Power & Energy
Caterpillar Inc.; Power & Energy; segment asset turnover calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Sales and revenues | |||||
| Assets | |||||
| Segment Activity Ratio | |||||
| Segment asset turnover1 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Segment asset turnover = Sales and revenues ÷ Assets
= ÷ =
The Power & Energy segment demonstrated consistent growth in both sales and assets between 2021 and 2025. However, the segment asset turnover ratio exhibited a more nuanced pattern over the same period, indicating varying levels of efficiency in asset utilization.
- Sales and Revenues
- Sales and revenues within the Power & Energy segment increased steadily from US$20.287 billion in 2021 to US$32.201 billion in 2025. This represents a cumulative growth of approximately 58.8% over the five-year period. The growth rate appears to have moderated slightly between 2023 and 2024, but resumed a higher pace in 2025.
- Assets
- Total assets allocated to the Power & Energy segment also increased consistently, rising from US$9.253 billion in 2021 to US$11.387 billion in 2025. While asset growth was positive each year, the rate of increase slowed in 2024, mirroring the slight moderation in sales growth observed during that period.
- Segment Asset Turnover
- The segment asset turnover ratio, a measure of how efficiently assets are used to generate sales, initially increased from 2.19 in 2021 to 2.65 in 2023. This suggests improving efficiency in asset utilization during those years. A slight decrease to 2.45 was observed in 2024, potentially linked to the slower growth in sales and a more substantial increase in assets. However, the ratio rebounded strongly in 2025, reaching 2.83, indicating a renewed improvement in asset efficiency. The highest ratio was recorded in 2025, suggesting the segment generated more sales per dollar of assets compared to any other year in the analyzed period.
Overall, the Power & Energy segment experienced positive growth in both sales and assets. The asset turnover ratio, while fluctuating, generally trended upward, culminating in a peak in 2025, which suggests effective management of assets to drive revenue generation.
Segment Asset Turnover: Financial Products Segment
Caterpillar Inc.; Financial Products Segment; segment asset turnover calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Sales and revenues | |||||
| Assets | |||||
| Segment Activity Ratio | |||||
| Segment asset turnover1 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Segment asset turnover = Sales and revenues ÷ Assets
= ÷ =
The Financial Products segment demonstrated increasing sales and revenues between 2021 and 2025. Simultaneously, the segment’s asset base experienced fluctuations, ultimately increasing over the five-year period. Analysis of the segment asset turnover ratio reveals a generally improving, but recently stabilizing, efficiency in asset utilization.
- Sales and Revenues
- Sales and revenues within the Financial Products segment increased from US$3,073 million in 2021 to US$4,220 million in 2025. This represents a cumulative growth of approximately 37.4% over the period. The growth was consistent year-over-year, with moderate acceleration observed between 2022 and 2023.
- Assets
- The segment’s asset base decreased slightly from US$34,860 million in 2021 to US$34,269 million in 2022. However, assets then increased to US$35,685 million in 2023, US$36,925 million in 2024, and reached US$41,476 million in 2025. This indicates a net increase of approximately 19.3% in assets over the five-year period. The most substantial asset growth occurred between 2024 and 2025.
- Segment Asset Turnover
- The segment asset turnover ratio, a measure of how efficiently assets are used to generate sales, remained at 0.09 in both 2021 and 2022. The ratio improved to 0.11 in both 2023 and 2024, suggesting increased efficiency in asset utilization. In 2025, the ratio slightly decreased to 0.10. While the 2025 value represents a slight decline from the prior year, it remains higher than the levels observed in 2021 and 2022, indicating sustained, though potentially plateauing, improvements in asset efficiency.
The observed increase in both sales and assets suggests overall growth within the segment. The initial improvement in asset turnover, followed by stabilization, warrants continued monitoring to determine if the segment can further enhance its asset utilization efficiency.
Segment Capital Expenditures to Depreciation
Caterpillar Inc., capital expenditures to depreciation by reportable segment
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Construction Industries | |||||
| Resource Industries | |||||
| Power & Energy | |||||
| Financial Products Segment |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
An examination of segment capital expenditures relative to depreciation reveals varying investment patterns across the reporting periods. Generally, the ratios indicate the amount of capital expenditure for each segment relative to its annual depreciation expense. A ratio greater than one suggests capital expenditures exceed depreciation, implying investment in growth or replacement of assets beyond normal depreciation. Conversely, a ratio less than one suggests depreciation exceeds capital expenditures, potentially indicating asset base decline without sufficient reinvestment.
- Construction Industries
- The Construction Industries segment exhibited an initial increase in the ratio from 1.08 in 2021 to 1.17 in 2022, suggesting increased capital investment relative to depreciation. A significant rise to 1.70 was observed in 2023, followed by a decrease to 1.39 in 2024 and a further slight decline to 1.35 in 2025. This pattern indicates a substantial investment cycle peaking in 2023, followed by a moderation in capital spending relative to depreciation.
- Resource Industries
- The Resource Industries segment demonstrated a consistent upward trend in the ratio throughout the analyzed period. Starting at 0.49 in 2021, the ratio increased to 0.64 in 2022, 0.81 in 2023, 1.03 in 2024, and reached 1.40 in 2025. This indicates a progressive shift towards increased capital investment relative to depreciation, potentially signaling a renewed focus on growth or modernization within this segment.
- Power & Energy
- The Power & Energy segment showed the most pronounced increase in the ratio over the period. Beginning at 1.10 in 2021, the ratio rose steadily to 1.38 in 2022 and 1.71 in 2023. Further substantial increases were observed in 2024 (2.21) and 2025 (2.68). This consistent and significant upward trend suggests substantial and ongoing capital investment in this segment, exceeding depreciation by an increasing margin.
- Financial Products Segment
- The Financial Products Segment maintained a relatively high ratio throughout the period, fluctuating between 1.47 and 1.87. The ratio began at 1.58 in 2021, decreased slightly to 1.55 in 2022, then increased to 1.78 in 2023, decreased to 1.47 in 2024, and rose again to 1.87 in 2025. This suggests consistent capital expenditure exceeding depreciation, although with some year-to-year variability.
In summary, while all segments generally exhibit capital expenditures exceeding depreciation, the magnitude and trend of this relationship vary considerably. The Power & Energy segment demonstrates the most aggressive investment pattern, while the Resource Industries segment shows a consistent, albeit slower, increase in investment. The Construction Industries segment experienced a peak in investment in 2023, followed by a moderation, and the Financial Products Segment shows relatively stable, high levels of capital expenditure.
Segment Capital Expenditures to Depreciation: Construction Industries
Caterpillar Inc.; Construction Industries; segment capital expenditures to depreciation calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Capital expenditures | |||||
| Depreciation and amortization | |||||
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Segment capital expenditures to depreciation = Capital expenditures ÷ Depreciation and amortization
= ÷ =
Analysis of capital expenditures and depreciation within the Construction Industries segment reveals a fluctuating relationship over the five-year period. Capital expenditures generally increased, while depreciation exhibited more stability, resulting in a changing ratio of capital expenditures to depreciation.
- Capital Expenditures
- Capital expenditures for the Construction Industries segment demonstrated an initial increase from US$255 million in 2021 to US$271 million in 2022. A more substantial rise occurred between 2022 and 2023, reaching US$376 million. Expenditures then decreased to US$323 million in 2024 before increasing again to US$358 million in 2025. This suggests periods of significant investment followed by consolidation or reallocation of capital.
- Depreciation and Amortization
- Depreciation and amortization remained relatively stable between 2021 and 2023, fluctuating between US$231 million and US$237 million. A slight increase was observed in 2024 to US$233 million, followed by a more noticeable increase to US$266 million in 2025. This increase in depreciation aligns with the higher levels of capital expenditures recorded in prior years, indicating assets placed in service are now being depreciated.
- Segment Capital Expenditures to Depreciation Ratio
- The ratio of capital expenditures to depreciation increased from 1.08 in 2021 to 1.17 in 2022, indicating that capital investments were growing at a faster rate than the depreciation of existing assets. The most significant increase occurred in 2023, with the ratio reaching 1.70, suggesting substantial investment relative to depreciation. The ratio decreased to 1.39 in 2024 and further to 1.35 in 2025. While still above the 2021 and 2022 levels, the decline suggests a moderation in the pace of capital investment relative to the depreciation of the asset base. The ratio’s movement suggests a shift in investment strategy or a normalization following the significant investment in 2023.
Overall, the Construction Industries segment experienced a period of increased capital investment, particularly in 2023, which subsequently impacted the depreciation expense and the capital expenditures to depreciation ratio. The recent trend indicates a stabilization of this ratio, suggesting a more balanced approach to capital allocation and asset utilization.
Segment Capital Expenditures to Depreciation: Resource Industries
Caterpillar Inc.; Resource Industries; segment capital expenditures to depreciation calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Capital expenditures | |||||
| Depreciation and amortization | |||||
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Segment capital expenditures to depreciation = Capital expenditures ÷ Depreciation and amortization
= ÷ =
Analysis of capital expenditures and depreciation within the Resource Industries segment reveals a notable shift in the relationship between investment and asset consumption over the five-year period. Capital expenditures demonstrate an increasing trend, while depreciation and amortization generally decline. This dynamic is reflected in a rising segment capital expenditures to depreciation ratio.
- Capital Expenditures
- Capital expenditures within the Resource Industries segment increased from US$199 million in 2021 to US$353 million in 2025. The increase was not linear, with a moderate rise from 2021 to 2023 (US$245 million) followed by more substantial growth in 2024 and 2025. This suggests a potential acceleration of investment in the latter part of the period.
- Depreciation and Amortization
- Depreciation and amortization decreased consistently from US$403 million in 2021 to US$252 million in 2025. This decline indicates a diminishing value of existing assets being expensed, potentially due to asset disposals, changes in asset lives, or the impact of prior-year capital expenditure patterns. The rate of decline slowed between 2022 and 2023, and again between 2023 and 2024.
- Segment Capital Expenditures to Depreciation Ratio
- The segment capital expenditures to depreciation ratio increased significantly from 0.49 in 2021 to 1.40 in 2025. This indicates that capital expenditures are increasingly outpacing depreciation. A ratio below 1.0 suggests that investment is not fully offsetting the consumption of asset value, while a ratio above 1.0 indicates that investment exceeds the rate of asset consumption. The most substantial increase in the ratio occurred between 2023 and 2025, coinciding with accelerated capital expenditure growth and continued depreciation decline. This suggests a strategic shift towards asset expansion and modernization within the segment.
The observed trends suggest a deliberate strategy of reinvestment within the Resource Industries segment. The increasing capital expenditures relative to declining depreciation indicate a focus on expanding capacity, upgrading existing assets, or introducing new technologies. Further investigation into the nature of these capital expenditures would provide additional context.
Segment Capital Expenditures to Depreciation: Power & Energy
Caterpillar Inc.; Power & Energy; segment capital expenditures to depreciation calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Capital expenditures | |||||
| Depreciation and amortization | |||||
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Segment capital expenditures to depreciation = Capital expenditures ÷ Depreciation and amortization
= ÷ =
Over the five-year period ending December 31, 2025, capital expenditures within the Power & Energy segment demonstrated a consistent upward trajectory, while depreciation and amortization exhibited more moderate fluctuations. This resulted in a notable increase in the segment capital expenditures to depreciation ratio.
- Capital Expenditures
- Capital expenditures increased steadily from US$627 million in 2021 to US$1,774 million in 2025. The largest year-over-year increase occurred between 2023 and 2024, with an addition of US$705 million. Growth was consistent across all periods, indicating a sustained investment strategy within the segment.
- Depreciation and Amortization
- Depreciation and amortization remained relatively stable between 2021 and 2023, fluctuating around US$550 million. A moderate increase was observed in 2024, reaching US$578 million, followed by a more substantial increase to US$661 million in 2025. While increasing, the growth in depreciation lagged behind the growth in capital expenditures.
- Segment Capital Expenditures to Depreciation Ratio
- The segment capital expenditures to depreciation ratio increased from 1.10 in 2021 to 2.68 in 2025. This indicates that capital expenditures are growing at a significantly faster rate than depreciation. The ratio more than doubled over the period, suggesting a substantial investment in new assets relative to the depreciation of existing assets. The most significant increase in the ratio occurred between 2023 and 2025, coinciding with the accelerated growth in capital expenditures and a more pronounced increase in depreciation.
The increasing ratio suggests the segment is actively modernizing and expanding its asset base. Continued monitoring of this ratio will be important to assess the efficiency of capital allocation and the potential impact on future profitability.
Segment Capital Expenditures to Depreciation: Financial Products Segment
Caterpillar Inc.; Financial Products Segment; segment capital expenditures to depreciation calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Capital expenditures | |||||
| Depreciation and amortization | |||||
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Segment capital expenditures to depreciation = Capital expenditures ÷ Depreciation and amortization
= ÷ =
The Financial Products segment experienced fluctuating capital expenditures and relatively stable depreciation and amortization over the five-year period. This resulted in a segment capital expenditures to depreciation ratio that demonstrated an overall increasing trend, though with some yearly variation.
- Capital Expenditures
- Capital expenditures within the segment began at US$1,218 million in 2021, decreased to US$1,141 million in 2022, and then increased to US$1,299 million in 2023. A subsequent decrease to US$1,085 million occurred in 2024, followed by a rise to US$1,341 million in 2025. This indicates a pattern of investment that is not consistently increasing, but shows a general upward trajectory over the period.
- Depreciation and Amortization
- Depreciation and amortization remained relatively consistent, ranging between US$719 million and US$772 million throughout the period. A slight decrease was observed from 2021 to 2022 (from US$772 million to US$734 million), followed by a minor decrease to US$731 million in 2023. Depreciation then increased slightly to US$740 million in 2024 and decreased again to US$719 million in 2025. The stability suggests a mature asset base within the segment.
- Segment Capital Expenditures to Depreciation Ratio
- The segment capital expenditures to depreciation ratio began at 1.58 in 2021 and decreased slightly to 1.55 in 2022. A notable increase to 1.78 occurred in 2023, followed by a decrease to 1.47 in 2024. The ratio then increased significantly to 1.87 in 2025. This ratio indicates that, in general, capital expenditures have been greater than the depreciation expense recognized, suggesting investment in new assets or upgrades to existing ones. The increasing trend, particularly in 2023 and 2025, implies a growing emphasis on capital investment relative to the existing asset base.
The fluctuations in capital expenditures, coupled with stable depreciation, drive the observed changes in the ratio. The higher ratio in 2025 suggests a potentially more aggressive investment strategy or a shift towards more capital-intensive projects within the Financial Products segment.
Sales and revenues
Caterpillar Inc., sales and revenues by reportable segment
US$ in millions
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Construction Industries | |||||
| Resource Industries | |||||
| Power & Energy | |||||
| Financial Products Segment | |||||
| Total reportable segments |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
Overall, the reportable segments demonstrate a general pattern of growth between 2021 and 2023, followed by a stabilization and, in one case, a slight decline through 2025. Total sales and revenues across all segments increased significantly from 2021 to 2023, reaching 72,787 US$ millions, before experiencing a modest decrease in 2024 and a subsequent recovery in 2025.
- Construction Industries
- Sales in this segment increased from 22,106 US$ millions in 2021 to a peak of 27,418 US$ millions in 2023. A decrease was then observed in 2024, falling to 25,455 US$ millions, and this downward trend continued slightly in 2025, reaching 25,060 US$ millions. While still higher than the 2021 level, the segment’s performance has plateaued and experienced a minor contraction in the most recent periods.
- Resource Industries
- This segment exhibited consistent growth from 2021 to 2023, increasing from 9,963 US$ millions to 13,583 US$ millions. Sales decreased to 12,389 US$ millions in 2024, but recovered to 12,474 US$ millions in 2025. The growth rate appears to have slowed, and the segment’s revenue remains relatively stable between 2024 and 2025.
- Power & Energy
- The Power & Energy segment demonstrated the most substantial growth across the analyzed period. Sales increased steadily from 20,287 US$ millions in 2021 to 28,001 US$ millions in 2023, and continued to grow, reaching 32,201 US$ millions in 2025. This segment consistently outperformed the others in terms of growth rate.
- Financial Products Segment
- The Financial Products Segment showed consistent, albeit moderate, growth throughout the period. Sales increased from 3,073 US$ millions in 2021 to 4,220 US$ millions in 2025. This represents a steady, incremental increase each year.
The combined effect of these segment performances is reflected in the total reportable segments revenue. The most significant growth occurred between 2021 and 2023, with a slight dip in 2024 before recovering to 73,955 US$ millions in 2025. The Power & Energy segment appears to be the primary driver of overall revenue growth, while Construction Industries experienced a recent stabilization and minor decline.
Profit
Caterpillar Inc., profit by reportable segment
US$ in millions
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Construction Industries | |||||
| Resource Industries | |||||
| Power & Energy | |||||
| Financial Products Segment | |||||
| Total reportable segments |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
The reportable segments demonstrate varied performance over the five-year period. Overall, total segment profit increased significantly from 2021 to 2023, followed by a decline in the subsequent two years. A detailed examination of individual segments reveals differing trajectories contributing to this overall pattern.
- Construction Industries
- Profit within Construction Industries exhibited substantial growth from US$3,706 million in 2021 to US$6,975 million in 2023. However, this was followed by a decrease in 2024 to US$6,165 million and a further decline to US$4,675 million in 2025. This segment experienced the most pronounced decrease in profit between 2023 and 2025.
- Resource Industries
- Resource Industries showed consistent growth in profit from US$1,291 million in 2021 to US$2,834 million in 2023. Similar to Construction Industries, profit decreased in 2024 to US$2,533 million and continued to decline in 2025, reaching US$1,988 million. The rate of decline in this segment was less dramatic than that observed in Construction Industries.
- Power & Energy
- The Power & Energy segment consistently increased its profit contribution throughout the period. Profit rose from US$2,768 million in 2021 to US$6,418 million in 2025, representing the only segment with uninterrupted growth. This segment’s performance partially offset the declines experienced in the other segments during the latter years of the period.
- Financial Products Segment
- The Financial Products Segment demonstrated modest and relatively stable growth. Profit increased gradually from US$908 million in 2021 to US$966 million in 2025. This segment’s contribution remained comparatively consistent throughout the five-year period.
The substantial growth in total segment profit between 2021 and 2023 was driven primarily by increases in the Construction Industries, Resource Industries, and Power & Energy segments. The subsequent decline in total segment profit in 2024 and 2025 is attributable to the decreases in profit from Construction Industries and Resource Industries, despite continued growth in Power & Energy. The Financial Products Segment’s stable performance had a limited impact on the overall trend.
The diverging trends among the segments suggest varying sensitivities to external economic factors or internal strategic shifts. Further investigation into the drivers behind the declines in Construction and Resource Industries, and the continued growth in Power & Energy, would be beneficial.
Assets
Caterpillar Inc., assets by reportable segment
US$ in millions
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Construction Industries | |||||
| Resource Industries | |||||
| Power & Energy | |||||
| Financial Products Segment | |||||
| Total reportable segments |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
The asset values across reportable segments demonstrate varied performance between 2021 and 2025. Overall, total reportable segment assets increased from US$54.622 billion to US$64.392 billion over the five-year period, indicating a general trend of asset growth. However, the growth was not consistent across all segments.
- Construction Industries
- Assets in this segment experienced initial growth from US$4.547 billion in 2021 to US$5.546 billion in 2023. A slight decrease was then observed in 2024 and 2025, closing at US$5.442 billion. This suggests a period of expansion followed by stabilization, potentially reflecting cyclical demand within the construction sector.
- Resource Industries
- This segment exhibited a modest decline in asset value from US$5.962 billion in 2021 to US$5.742 billion in 2023. A recovery was noted in 2024 and 2025, with assets reaching US$6.087 billion. The fluctuations may be linked to commodity price cycles and investment in resource extraction projects.
- Power & Energy
- A consistent upward trend is apparent in the Power & Energy segment. Assets increased steadily from US$9.253 billion in 2021 to US$11.387 billion in 2025. This growth suggests ongoing investment in power generation and energy infrastructure, potentially driven by increasing energy demand or a shift towards renewable energy sources.
- Financial Products Segment
- The Financial Products Segment consistently held the largest asset value among the reportable segments. Assets increased from US$34.860 billion in 2021 to US$41.476 billion in 2025. This substantial growth indicates expansion of the financing and leasing activities within this segment, potentially supporting sales of the company’s core products.
The Financial Products Segment contributed the most significantly to the overall asset growth. While Construction and Resource Industries experienced periods of fluctuation, Power & Energy demonstrated consistent expansion. The overall trend indicates a growing asset base, with the Financial Products Segment being the primary driver of this growth.
Depreciation and amortization
Caterpillar Inc., depreciation and amortization by reportable segment
US$ in millions
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Construction Industries | |||||
| Resource Industries | |||||
| Power & Energy | |||||
| Financial Products Segment | |||||
| Total reportable segments |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
Depreciation and amortization expense across the reportable segments exhibited varied trends between 2021 and 2025. Overall, total depreciation and amortization initially decreased before stabilizing and then increasing slightly. A segment-level review reveals differing patterns contributing to this overall trend.
- Construction Industries
- Depreciation and amortization within this segment decreased from US$237 million in 2021 to US$221 million in 2023, representing a consistent decline. However, the segment experienced an increase in expense in the subsequent two years, reaching US$266 million in 2025. This suggests potential new investments or increased asset utilization towards the end of the period.
- Resource Industries
- This segment demonstrated a more pronounced downward trend. Depreciation and amortization decreased significantly from US$403 million in 2021 to US$252 million in 2025. This decline is consistent over the entire period and could indicate asset disposals, reduced capital expenditure, or a shift in the asset base within this segment.
- Power & Energy
- Depreciation and amortization in the Power & Energy segment remained relatively stable between 2021 and 2023, fluctuating around US$550 million. A noticeable increase occurred in 2024 and 2025, reaching US$661 million. This suggests increased investment in assets or a change in the depreciation methods employed within this segment.
- Financial Products Segment
- The Financial Products Segment exhibited the most stable depreciation and amortization expense. The values remained consistently between US$719 million and US$772 million throughout the five-year period, indicating a relatively consistent asset base and depreciation schedule.
- Total Reportable Segments
- Total depreciation and amortization decreased from US$1,983 million in 2021 to US$1,805 million in 2023. The expense then stabilized at approximately US$1,811 million in 2024 before increasing to US$1,898 million in 2025. The overall trend suggests a period of capital expenditure reduction followed by a potential resumption of investment towards the end of the analyzed period. The increase in 2025 is likely driven by the increases observed in the Construction Industries and Power & Energy segments.
The differing trends across segments highlight the importance of analyzing depreciation and amortization at a granular level. The overall trend is influenced by the specific asset profiles and investment strategies of each segment.
Capital expenditures
Caterpillar Inc., capital expenditures by reportable segment
US$ in millions
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Construction Industries | |||||
| Resource Industries | |||||
| Power & Energy | |||||
| Financial Products Segment | |||||
| Total reportable segments |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
Capital expenditures across reportable segments demonstrate varied trends over the five-year period. Overall, total capital expenditures increased significantly from 2021 to 2025, though not consistently year-over-year. A substantial increase is noted in the latter part of the period, particularly from 2023 to 2025.
- Construction Industries
- Capital expenditures in this segment exhibited initial growth from 2021 to 2022, followed by a notable increase in 2023. However, a decrease was observed in 2024 before recovering somewhat in 2025, remaining above the 2021 level. The fluctuations suggest potential project-based investment cycles within this segment.
- Resource Industries
- Capital expenditures in Resource Industries increased from 2021 to 2022, then stabilized with modest growth in 2023. A further increase occurred in 2024, and this trend continued into 2025, reaching the highest level within the observed period. This suggests a sustained investment phase within this segment.
- Power & Energy
- This segment experienced consistent and substantial growth in capital expenditures throughout the entire period. The increase from 2021 to 2025 is particularly pronounced, indicating significant investment in this area. The accelerating growth suggests a strategic focus on expanding capacity or adopting new technologies within the Power & Energy segment.
- Financial Products Segment
- Capital expenditures in the Financial Products Segment decreased from 2021 to 2022, followed by a recovery in 2023. A decrease was then observed in 2024, with a subsequent increase in 2025, bringing expenditures back to levels comparable to 2021 and 2023. This segment’s capital expenditure pattern appears more volatile than the others.
The most significant driver of the overall increase in total capital expenditures is the Power & Energy segment, which experienced the largest absolute growth. While the Financial Products Segment shows some volatility, the Construction and Resource Industries segments contribute to the overall upward trend, albeit to a lesser extent. The combined effect of these segment-level trends results in a substantial increase in total reported capital expenditures from the beginning to the end of the period.